The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-02-01
WHAT SHALL BE DONE WITH THE sURpLUsq

The disposition of the Treasury surplus is
one Of the most important questions now
pressing for settlement, and one Of the most
difficult to answer Secretary Manning, in
his late report, refers to it as 'that standing
shame in our finance, the Treasury surplus
Senator John Sherman, in his letter to the
Boston bankers, said:
GAS to the greater question Of how to abol-
ish our vast and growing surplus revenue. or
to appropriate it for great purposes OF national
safety or development-this is now exciting
the attention of Congress and the people OF
the United States, and, we may hope, will be
solved with wisdom and in spirit OF patriot
ism, without regard to party ties or sectional
animosities."
OF course it should be solved with wisdom
the question is, howG The surplus is a white
elephant on the governments hands, and
growing bigger every day; what shall we do
with itg The surplus revenue of the govern
ment is $40, 600, 900 month. As long as we
could pay off the public debt at the rate OF
500, OO0, 600 a year this was good use for
the surplus revenue. But the reduction of
the public debt cannot continue much longer.
The outstanding funded debt is so arranged
that $3.50, 000 600 Of it cannot be paid before
Sept l, 1891, and $737. 776, 400 cannot be
paid before July l, 1907; that is, these
amounts cannot be paid before the dates
named except by purchasing the bonds at
1. II. 1lo,
That part of the funded debt subject to call
is nearly paid off-will probably all be paid
by the first of next July. After that nothing
more can be paid before 1891, and the Treas
| ury surplus will begin to accumulate at the
rate of $120, 600, 900 year. In other words,
unless something is done, as Senator Sher-
| man says, ITO abolish the surplus" the
money of the country will continue to flow
into the Treasury in a steady stream at the
rate of SIC, 600, 600 month, with no way CT
paying it out legally, unless a way is pro-
vided. This state of things should not be
permitted to come about. Such an absorp-
| fion of the money of the country could not
| fail to prove very disastrous to its business
interests.
| Of course, the outstanding debt of about
S., 200, 900, 900 falling due in 1891 and 1907
must be provided for, but it is not necessary
to hoard money for that purpose least of all,
to pile it up at the rate of $40, 900, 600 month.
| The fact is, mere compliance with the sink
&c VI;
debt by 1907. That law requires the purchase
or pay ment Of l per cent. of the entire debt Of
the United States to be made within each
fiscal year, which is to be set apart as sink
ing fund, and the interest of which shall in
like manner be applied to the purchase or pay
ment of the public debt" L. unnecessary
to make any other provision for the outstand-
ing bonded debt than compliance with the
sinking fund act Hoarding money for the
purpose is not to be thought of.
There would seem to be only three ways OF
dealing with the surplus: First, abolish it by
reducing taxation so that the revenues of the
government will not exceed its expenditures;
|
absorb the surplus; or, third, by distributing
it among the States and people by some legal
lied machinery to be provided by Congress
AS to reducing taxation, there is this to be
said: The principal revenue of the govern
ment at present is from whisky, tobacco anc
imported luxuries-the greater part from liz
| III 4cx- l.
and paid, scarcely felt at all, and it is doubt
full if their repeal would give any relief to the
people or even cheaper the articles to the con
sumner. The revenue comes to the govern
ment very easily; would it be wise to cut it of
without reasonable prospect Of some com
pensating benefit? A wise use of the surplu
were better than abolishing it without an,
good result.
The distribution of the surplus among tn
: States or people by some legalized method, t
be provided for the purpose would natural,
strike the popular mind favorably. AS tn
money comes from the ,eople, why not sen,
it back to through the channels of trade or b
a system of national loans to the States, or il
some way to be provided by Congressg TIL
suggestion merits consideration, yet it is at
tended with serious difficulties, and it will re
ouire careful deliberation to formulate feasi
Bile plan of this kind. A Washington dispatc
in the Journal recently stated that Congress
man w. L. Scott. of Pennsylvania, has pre-
pared and will introduce bill on the subject
! Mr. Scott is u Democrat and one of tn
wealthiest men in Congress-worth sewers
millions. His plan is to authorize the Secre
tary of the Treasury to loan the surplus fund